2、 Raise and build warehouses
This is the choice of lazy people. Pulling up and building positions will inevitably lead to a significant increase in costs. At the same time, there are many short-term follow the trend trades entering, and it is difficult to maintain high positions. If high-level shipments are not smooth, it will actually trap the market makers.
Of course, building a high warehouse also has its advantages. When there is significant news, it is necessary to collect chips in the short term, only by sacrificing price to win time. In addition, it is because there are a large number of short-term follow orders, which can be used to spread prices and achieve the same effect as high positions. Also, due to the large number of follow the trend stocks, the stocks are relatively light and easy to pull up. As long as they can exit in a timely manner, the actual profit margin is not low. Last year's May 19th market, many stocks adopted this method. What everyone needs to pay attention to is that due to the high position of stocks, the holdings of market makers are low, and the profits of individual investors are large. After reaching the peak, there is usually a sharp drop. 3、 New stock establishment
Some market makers take advantage of individual investors' pessimism about the stock and buy a large amount of chips on the first day of listing, thus eliminating most of the process of building a position. Well done, set up a platform, then make a fake breakthrough, and you're done; Those who do not do well, force them to buy, and the more they buy, the higher they will get. However, ultimately the goal of building a warehouse can be achieved.
The trend of building positions in most stocks lacks one or several stages. This is not uncommon, because there are reasons we don't know. However, only by following this position building process can the lowest cost and highest position be achieved.
The general process of raising
After building the warehouse, it's about raising it.
Compared with building a position, there are two characteristics of raising prices: one is the fast rate of increase, and the other is the large increase, which is determined by the mentality of being a trader. So, when it comes to stock trading, everyone wants to hold onto the stage of rising prices, which is called 'sitting in a sedan chair'.
For analysts, the biggest difference between raising prices and foodies is that when building a position, there is a dense area in the early stage as a reference, which makes it easier to grasp the price. However, when raising prices, a new era has already been opened up, without a reference frame. So although most stocks experience significant gains when they rise, very few people make the full profit.
The trend characteristics and increase of the rally are completely decided by the banker, and are basically not affected by any external factors. However, raising prices is only the middle stage between building warehouses and shipping, with no clear boundary between the two ends, so it is easy to make mistakes in judgment.
During the high period, some stocks even experienced a pause, known as a turnover platform. It could be that the market maker is waiting for the right opportunity, or it could be that the market maker is not selling well and has to continue to rise.
During the process of raising prices, some market makers also sell a portion of their goods, which is a different concept from reducing positions. Its main purpose is to spread the price difference, reduce the cost of raising prices, and push up the cost of individual investors holding positions. For stocks with low open positions, this process is necessary. Some stock trends are jokingly referred to as "bulldozers", meaning that the daily chart rises every day, but the market makers buy in the morning, pull up in the middle, and sell in the evening to maintain the stability of their holdings. Some stocks go up and down for a day, and the market maker can buy them back at a lower price than the selling price, so that when they finally sell, they can earn a profit greater than holding them all without operation, but the increase in these stocks is not significant.
If the position of the market maker is sufficient, almost all stocks will have a straight upward trend. For stocks with high innovation, this process is at least 30%. If you can grasp this process, you will reach a transcendent realm of long-term, medium-term, and short-term trading. That is a super expert, not a short-term expert. I once calculated that in an era without a stock market halt, adding up all the significant increases that could be discovered and purchased could result in profits of thousands of times per year. We only need to seize 1/10 of the opportunities, and we can be proud of the stock market. Pull up pause
Pulling up the pause, which is commonly referred to as "organizing" or "adjusting". The reason for the pause is sometimes due to the market peaking or favorable news, and the market makers take the opportunity to sell and make a price difference; Some of them are due to the fact that floating funds have not been cleaned up, so they need to be sorted out to push up the holding costs of individual investors and facilitate future sales; Some of them, in order to leave some room for upward movement and create a "support" for the final shipment before the time for shipment, first sideways at a high level; Some market makers originally wanted to take the lead, but ended up selling poorly. The more they buy, the more stocks they have in their pockets, so they have to pull for a while longer. Looking back, it has become a pause in the upward trend.
Adjustment can be divided into callback and consolidation. A pullback refers to a short-term peak in stock prices, followed by a decline, a short-term bottom, and then a continued rise. Consolidation, also known as sideways movement, refers to the fluctuation of stock prices within a relatively small range during a certain period of time, or in other words, the combination of several corrections. However, whether it is a callback or consolidation, it is a relay form, and the bottom and top are not called adjustments or consolidation.
For a pullback, the short-term shipment pattern appears first. This kind of shipment is difficult to distinguish from seeing the top. So many people are often shaken out during short-term head breaks. Of course, safety comes first. It's better to earn less than to watch the dealer sell and not run at all. If there's a big problem, spend more money in the future to buy it back. For example, 0008 peaked briefly in July 1999 and then fell for a period of time after shipment, and then became a long-term platform where the dealer bought back the chips sold at a low level.